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State Budget Crisis - 32 Days

* STATE SENATE SET TO MEET 6 PM TODAY

* NO ANNOUNCEMENT OF BUDGET DEAL YET

* PERATA "HOPEFUL" OF BUDGET ACTION

* DELAY IMPACTING SENIORS, PEOPLE WITH DISABILITIES

* $1.1 BILLION CAN'T BE PAID FOR VITAL SERVICES

 

SACRAMENTO [UPDATED 08/02/07 10:30 PM]  - -   With California now 32 days without a budget, the State Senate is scheduled to meet early this evening (Wednesday, August 1), at 6:00 PM, with Senate President Pro Tem Don Perata (Democrat - Oakland) described by a spokesperson as "hopeful" for a bi-partisan vote to approve the long delayed State budget.  However no budget deal has been officially announced. 

 

The news of the Senate Floor session comes after State Controller John Chiang - the elected state official responsible for paying the State's bills, said yesterday that Californai was unable to pay $1.1 billion to vital services, including nursing homes, special education programs, cancer detection programs, community colleges, and others impacting hundreds of thousands of seniors, people with disabilities, people with mental health needs, people with MS,  Alzhiemers and other health needs, traumatic brain and other injuries, and low income families. 

 

The Assembly - which is in recess and not scheduled to return until August 20 after passing the budget on July 20 and sending it to the State Senate, where it has remained stalled.

 

Gov. Arnold Schwarzenegger, who urged last Thursday (July 26)  that it was "time to pass the budget", met privately with all 15 Senate Republicans for about an hour yesterday (Tuesday, July 31), though no details were released. 

 

Senate Last Voted on Budget July 21
Senate President Pro Tem Don Perata (Democrat - Oakland) called the floor session which. if held, would be the first since a week ago when the budget negotiations disintegrated after the proposal for additional new spending cuts and savings by Senate Republicans was unveiled. Previously the State Senate, after a marathon nearly 24 hour floor session lasting from 11 AM July 20th to 10:00 AM July 21,  was unable to pass  the Assembly version of the budget, with a vote of 25-14 - short two votes of the necessary 27 votes required for passage.  No action on the budget has been taken since that vote.

 

Democrats hold 25 of the 40 State Senate seats, with Republicans holding the remaining 15

 

Gov. Arnold Schwarzenegger, who urged last Thursday (July 26)  that it was "time to pass the budget", met privately with all 15 Senate Republicans for about an hour yesterday (Tuesday, July 31), though no details were released. 

 

Senate Last Voted on Budget July 21
Senate President Pro Tem Don Perata (Democrat - Oakland) called the floor session which. if held, would be the first since a week ago when the budget negotiations disintegrated after the proposal for additional new spending cuts and savings by Senate Republicans was unveiled. Previously the State Senate, after a marathon nearly 24 hour floor session lasting from 11 AM July 20th to 10:00 AM July 21,  was unable to pass  the Assembly version of the budget, with a vote of 25-14 - short two votes of the necessary 27 votes required for passage.  No action on the budget has been taken since that vote.

 

Democrats hold 25 of the 40 State Senate seats, with Republicans holding the remaining 15. 

 

State Controller Warns State Unable to Pay $1.1 Billion for Services

State Controller John Chiang announced on Tuesday that the ongoing budget stalemate prevented his office from paying an estimated $1.1 billion to a wide range of services and programs, including many that impact seniors, people with disabilities, children and others. 

Another $2.1 billion in payments will be withheld if the stand-off continues through August according to the State Controller.

IHSS and SSI/SSP Still To Be Paid - But Many Other Programs Won't

Some services - required by federal law, are exempted and payments will still be made for the following according to the State Controller's office:

* SSI/SSP Supplemental Security Income/State Supplementary Payment

* In-Home Supportive Services (IHSS) and other federally required (mandated) programs 

* Debt service and other financial obligations authorized by the State Constitution.

* Payroll for state employees covered by the Federal Fair Labor Standards Act.

* Vendor payments for services provided in the fiscal year ending June 30 - though, with some exceptions, no payments for services beyond that point without a state budget. 
• Expenses with ongoing appropriations from the Legislature, including Medi-Cal doctors and pharmacies, CalWORKs, income tax refunds and payments on claims for unclaimed property.

* Basic funding to K-12 education - though this does not include programs like special education (see below) or payments to vendors that provide services to the schools.

 

Controller Can't Pay Nursing Homes, Hospitals, Managed Care Plans

Although the State  is authorized to make Medi-Cal payments to nurses, doctors and pharmacists who directly bill Medi-Cal, the Controller said he does not have the legal authority to pay Medi-Cal costs to institutions, such as hospitals, nursing homes, managed health care plans, and clinics, and also to regional center funded services covered by Medi-Cal. .

During previous no-budget times, those institutions and programs have relied on a $1 billion General Fund contingency fund to tide them over. However, the Department of Health Care Services last week said the contingency fund is depleted,  and that the State will and be unable to pay $227 million to hospitals this week

 

Some larger programs and providers are able to continue operations with loans - the cost of which the State does not reimburse probably through August.  However smaller providers who also provide critically needed services to people with disabilities, seniors, people with mental health needs, and others may not have the resources to continue much longer - with some reports indicating closure or imminent plans of closures of some programs this week and in the coming weeks.  those services range from child care to adult day health, nursing homes and other critical services. See previous CDCAN Reports for more details on this impact.

 

Other programs or services impacted by budget delay:

* Special and other education programs: Without a budget in place for the fiscal year that started July 1, the Controller this month was legally prohibited from paying $326.6 million to community colleges, $170 million to school districts for categorical programs such as special education and remedial summer school; and $140 million to vendors who provide food, paper products and supplies to the State. 

Child Development Program Funds: He has been forced to withhold $300 million in child development program funds that go to schools and private pre-school and day care programs under contract with the Department of Education.

Highways and Streets: If no budget is enacted in August, the Controller will be unable to disburse $100 million from the highway tax, collected in July that is scheduled to be sent at the end of August to cities and counties for local street and road maintenance and repairs.

Vendors: Vendors for services provided to the State after July 1 (some exceptions include most regional center funded vendors, who can be paid out of the special contingency fund - now depleted - for at least the month of July.

Elected officials and appointed staff: Salaries and per diem of state elected officials and their appointed staff.

Assembly Action on Budget Limits What Senate Can Do Without Further Delays

With the Assembly passing the budget by a bi-partisan vote of 56-23 on July 20th and adjourning for 4 weeks for their summer recess, the Senate is faced with limited choices to either pass that version of the budget or make changes that would require the Assembly to return to approve it.  Assembly Speaker Fabian Nunez (Democrat - Los Angeles) has said he would not call the Assembly back to Sacramento "under any circumstances". 

 

The Senate could make some changes that doesn't impact the main budget bill but somehow addresses in some way the concerns raised by Senate Republicans in a separate budget related (trailer) bill that would allow some Senate Republicans to vote for the budget, and then in theory have the Assembly pass the separate budget related (trailer) bill at a later date - when they return on August 20, without holding up the budget.

 

The version of the budget as passed by the Assembly July 20th, included major cuts to public transportation of $1.3 billion, suspending cost of living increases due in January for one year for CalWORKs recipeints, and for five months the SSP (state portion) of the SSI/SSP (Supplemental Security Income/State Supplemental Payment) grants for people with disabilities, the blind and low income seniors.  Senate Republicans proposed additional cuts - largely focusing on CalWORKS and also transportation.  For a copy of the Senate Republicans list of cuts and graph, visit CDCAN website at www.cdcan.us

 

Assembly Passed Budget July 20

The Assembly previously passed SB 77, the main budget bill and several budget related bills that impact everything from Medi-Cal to Adoption Assistance Program to education and regional centers, in a all night session that began July 19 and ended at 4 AM on July 20.  The Assembly then adjourned for their four week summer recess and is not scheduled to return to the State Capitol until August 20.  That version of the budget is stalled on the Senate floor - because Senate Republicans want additional new cuts and savings before they provide at least the two votes that the 25 Senate Democrats need to pass it.  Senate Democrats oppose the additional new proposed cuts - largely focused on nearly $1 billion reductions and savings from the CalWORKS program - the state's welfare to work program that includes thousands of children and parents with special needs, and a shift of additional transportation funding to help balance the budget. 

Governor Says "Now Is Time" To Pass Budget

Governor Arnold Schwarzenegger, saying that the budget stand-off is "now at the place that threatens the daily operations" of the State, urged the State Senate to "do what is necessary to pass this budget", in a brief press conference at the State Capitol July 26, late Thursday afternoon.

 
The Governor said he was very concerned about the impact of the budget delay impacting Californians, saying that "shutting down the State" is not an option. He cited the budget delay impacting the ability of the State to fight forest fires because vendors who repair and supply parts for firefighting airplanes have stopped doing business with the State until a budget is passed and they can get paid.  The Governor said his staff is preparing an executive order that he will sign if necessary to ensure that funding for firefighting is maintained.
 
In other areas the impact of the delay is covers a wide range of services and programs, including those impacting children and adults with disabilities, mental health needs, seniors and low income families. Programs include special education to adult day health centers to independent living centers, area agencies on aging, nursing homes, and other institutional facilities.  Regional Centers serving 220,000 children and adults with developmental disabilities are also impacted - though the impact will be felt later in August if the budget stalemate lasts that long.  See CDCAN Report #102-2007 about details of the major impact of the budget delay on hundreds of thousands of people with disabilities, mental health needs, seniors and others across the State. 
 
The press conference was in part a response to Senate President Don Perata's  (Democrat - Oakland) appeal for the Governor to intervene, saying that "...the governor's the guy that I'm looking to now for the leadership,  to get everybody to calm down now

Message Seemed Directed At Senate Republicans

The Governor said that it was time for both Senate Democrats and Republicans to "work out differences" but in message that seemed directed at Senate Republicans who refuse to provide at least the two votes needed to pass the budget in the Senate, that  "...I dont think this budget should be delayed any longer..I offered from beginning to use my veto power in order to help to get it passed - both parties know that - to do what is necessary to get this budget passed."

 

Highlights of Governor's press conference

* Met with Senate President Pro Tem Don Perata (Democrat - Oakland) and Senate Republican Leader Dick Ackerman (Republican - Tustin), though did not disclose any other details.

* Said that much progress has been made in the last several years in reducing the budget shortfall significantly over the past four years and that the amount of the shortfall in the Assembly passed budget of $700 million, was just a difference of opinion.

* The Governor said he understood why some Senate Republicans wanted to take action now on the budget saying that "others believe next year is an election and then nothing gets done.....I don't agree with that." and he repeated that "the time is now to pass the bduget - from now on [the delay] will effect California. Vendors won't get paid..."

* Doesn't believe the Assembly passed budget should be "reopened" and said that "I think that [Senate] Republicans would like to do that - I understand. If you believe that it all has to be done htis year and have impact on the [budget] outyear, then that is why they want to do that. I don't believe we should do that. [We should] pass the budget and make a commitment to reform the budget system, and go to zero [operating deficit] next year" The Governor repeated that it was time to  come to closure on the long delayed budget.

* Felt it was time to move on to other critical issues facing the state, including healthcare reform which he said was "something historic that we want to do - which the country hasn't been able to do". He also mentioned other issues including water storage, education that he wanted the Legislature to focus on.   

* Said that one idea for reforming the budget process in times of deficits is one mentioned to him by former President Clinton which he used when he was governor of Arkansas.  That process included a several lists agreed to in advance by the governor and legislature that prioritized services or programs and which would be cut depending on the size of the shortfall. 

 

Perata Says Senate Republican Budget Hold-up is "fiscal terrorism"

With the budget stand-off in the State Senate worsening late Wednesday and Thursday morning (July 26), Senate President Pro Tem Don Perata (Democrat - Oakland) urged the Governor to get involved to help work out a deal that would win at least 2 Republican votes for the budget.Perata said that Senate Republicans actions holding up the state budget was "fiscal terrorism".  Perata delayed a vote on the budget yesterday. 

The Oakland Democrat said that "As far as I'm concerned [Senate Republicans can] continue to hold up the state budget because I'm not going to capitulate to this kind of terrorism."

Perata refused to apologize for the remark in response to Senate Republican demands for further additional new cuts to the Assembly passed budget and refusal to provide any votes unless those cuts were made.

Senate Republican Leader Dick Ackerman said reaching a budget deal would not be resolved by name calling - but both leaders agreed to continue meeting to work out a possible budget agreement. 

 

Perata said that the "reason that we're not going to the [Senate] floor right now is that [Senate Republican Leader] Dick Ackerman and I have been talking about ways we can find some kind of compromise.  I don't think anybody wants to end up discrediting the institution and that's what we're getting close to do if we continue to go in this direction." 

 

The Senate Democratic leader said that the leaders are trying to lower "the rhetoric, get the governor actively engaged with the [Senate] leadership....and then hopefully with the Governor and the Republican caucus to try to resolve this."

 

CDCAN NEWS: Federal Deficit Reduction Act of 2006 Citizenship and Identity Requirements Issues by California Department of Health Care Services - The Department of the Health Care Services released June 5, 2007 official instructions (called an “All County Welfare Directors Letter 07-12”)  to all of California’s county welfare directors, welfare administrative officers, Medi-Cal Program specialist and liaisons, county health executives, county mental health directors, county Meds Liasons and to advocates across California.  All County Welfare Directors Letter 07-12 (click here 
 Purpose: The purpose of this All County Welfare Directors Letter (ACWDL) is to provide counties with instructions for implementing the new requirements of the federal Deficit Reduction Act of 2005 (DRA) for documentation of United States (U.S.) citizenship or U.S. national status and identity as a condition of Medi-Cal eligibility for applicants and beneficiaries who declare that they are U.S. citizens or nationals.
What Does It Change: This new requirement does not change the documentation or eligibility determination process for individuals declaring as non-citizen immigrants. The Department of Health Care Services said that counties should continue to follow existing Medi-Cal verification procedures for those who do not declare they are U.S. citizens or nationals.

LATEST CDCAN DISABILITY RIGHTS REPORTS

Photo of "Community Choices Act" protest and arrest on Capitol Hill, Washington DC on April 30, 2007 - see CDCAN Report #059-2007 for details and more photos.

SPOTLIGHT ON: CDCAN Report 059-2007 (04/30/07 - click here) - Report on protest and arrest of over 100 persons with disabilities on Capitol Hill in Washington, DC, organized by ADAPT, a nation-wide disability rights grassroots advocacy organization in support of recent new proposed federal Medicaid legislation called the "Community Choices Act".  Updated information (as of May 1 and more photos.

LATEST REPORT: CDCAN Report 074-2007 (05/17/07 - click here) Report  on death of widely admired and respected advocate, Theresamary Johnson, president of the Older Women's League of California, who died on May 12th, with information on services and her life. 

CDCAN Report 069-2007 (05/08/07 - click here) Report of the Assembly Budget Subcommittee on Health and Human Services hearing on May 9th, with release of the hearing agenda, summary of the agenda (complete copy on CDCAN website).  

CDCAN Report 068-2007 (05/08/07 - click here) Report of the Assembly Budget Subcommittee on Health and Human Services hearing on May 9th, with background on issues likely to be heard and voted on. See Report 069-2007 for summary of actual hearing agenda.

CDCAN Report 067-2007 (05/07/07 - click here) Report of the Senate Budget Subcommittee on Health and Human Services and issues concerning Agnews Developmental Center outpatient health clinic and related health issues on agenda, including background (this is not a report of what the subcommittee did - the report was released just before the hearing started - see later CDCAN report for wrap up of what happened, including report on issues related to Medi-Cal). 

CDCAN Report 066-2007 (05/06/07 - click here) Report of nomination of Kerry Weems as the new Administrator of the federal Centers on Medicare and Medicaid Services (CMS) - the agency that oversees both program and has tremendous impact on federal funding for services and supports impacting over hundreds of thousands of Californians with disabilities, seniors and others.  

CDCAN Report 065-2007 (05/06/07 - click here) Report on state budget hearings scheduled for May 7th and May 9th on developmental services, May 8th on special education due process contract and state special schools, and other budget related hearings and issues. 

CDCAN Report 064-2007 (05/05/07 - click here) Report on passing of Shirley Klein, a beloved friend, poet and advocate, at age 74. She formerly was resident of West Virginia, moved to Sacramento - and in 2004 moved to Grass Valley area (one hour north east from Sacramento).  She was a former member of Capitol People First, and also a founding member of the California Disability Community Action Network - helping to plan many of the early events and rallies - and composed poems that were specifically written for some of those events (and were read at those events).  

CDCAN Report 063-2007 (05/03/07 - click here) Report action by Assembly Budget Subcommittee on May 2, approving the Governor's proposal (made as part of the budget he proposed in January) that will fully fund or pass on the cost of living increases scheduled to take effect January 1, 2008 for SSI/SSP (Supplemental Security Income/State Supplemental Payment). The Senate took this action earlier on April 9th.  

 CDCAN Report 062-2007 (05/02/07 - click here) Report on the scheduling of the May 9th Assembly Budget Subcommittee hearing focusing on regional center funded and at least 1 developmental center issue under the Department of Developmental Services budget proposed by the Governor for 2007-2008.  These items were held over from the April 11th hearing due to time. 

CDCAN Report 061-2007 (05/02/07 - click here) Report on Assembly Budget Subcommittee hearing scheduled for May 2 at 1:30 PM on SSISSP cost of living, Adult Protective Services, food stamp programs, and requests from advocates for additional funding for senior programs, including Linkages. 

SPOTLIGHT ON: WHATEVER HAPPENED TO?: CDCAN Report 093-2007 (12/06/06 - click here) Previous December 2006 CDCAN Report on the cancellation of the long delay Department of Developmental Services statewide computer system called the "California Developmental Disabilities Information System" or "CADDIS" that cost millions of state funds and potentially could mean the loss of millions of federal matching dollars.  

CDCAN Report 060-2007 (05/01/07) - click here) Report on selection of California State Independent Living Council executive director Mike Collins as the new director of the federal agency, National Council on Disability based in Washington, DC, effective June 18, 2007. 

CDCAN Report 058-2007 (04/30/07 - click here) Report about Governor's appointment of new director of the California Department of Social Services, which oversees many programs critical to children and adults with all disabilities, seniors, workers and others including In-Home Supportive Services (IHSS), SSI/SSP (Supplemental Security Income and the State Supplemental Payment), Community Care Licensing, Adult Protective Services, CalWORKS (the State's welfare to work program, that has many mothers with special needs, and children with special needs)

CDCAN Report 057-2007 (04/27/07 - click here) Report on Governor's Olmstead Advisory Committee scheduled for April 27th and the agenda, background of the 1999 landmark US Supreme Court Olmstead Decision, including timeline and photo of the two persons with developmental and other disabilities who brought the suit: Elaine Wilson, who passed away and Lois Curtis (pictured right)

CDCAN Report 056-2007 (04/26/07 (all parts - click here) REVISED REGIONAL CENTER RELATED BILLS - Complete and revised update on California bills that impact developmental services - specifically community based services and supports funded through the 21 regional centers under the Department of Developmental Services.:  With a critical deadline (April 27)  fast approaching to pass bills out of Senate or Assembly policy committees in order to stay alive this year, several bills impacting developmental services - including community-based services and supports funded by the 21 non-profit regional centers overseen by the Department of Developmental Services. [see separate CDCAN reports focusing on bills on other issues, including In-Home Supportive Services, Medi-Cal, Health Reform, health facilities, education, etc or go to the CDCAN website and watch for CDCAN Townhall Telemeeting that will focus on Regional Center funded community based services,  IHSS and supportive living services including problems with workers being paid on time, quality assurance, etc). 

CDCAN Report #55-2007 (04/25/07 - click here) SPECIAL EDUCATION - report about the passage out of Assembly Education Committee, of a special education bill, AB 1659 by Assemblymember Sally Lieber (pictured left), sponsored by parents and families of children with special needs that advocates say will make the dispute resolution process fair and balanced.

CDCAN Report 053-2007 (04/25/07 - click here)  on the latest update on California bills impacting In-Home Supportive Services (IHSS)  and other in-home care services including bills about background checks, training, payment for health appointments..

SHIRLEY KLEIN - REMEMBERING A POET & ADVOCATE

Remembering our friend, poet and advocate who passed away at age 74.  A celebration of her life with memories from the people who she loved and loved her was held on May 5, 2007 near Grass Valley, CA - just about an hour from Sacramento (north east).  Her ashes were scattered  in the hole where we planted a small dogwood tree in her memory - just a few yards from the beautiful home where she lived and wrote her poems.  I am finishing up a tribute to her that I will send out.  Her life meant something to her  and her life will always mean something to us - Marty Omoto

Our Voices United
by Shirley Klein 
formerly of West Virginia and Sacramento former Member of 
Capitol People First & founding member of CDCAN

Our voices united, The peril undone
We stand tall together, But we've only begun.

Our freedoms are threatened, Our lives on the line
We don't have tomorrow,  Today is our time

Let our unity thunder, Till power and greed
Both crumple before, The depth of our need.

Let our unity Clamor, For all who have died
Because no one would hear them,  Or come to their side

The whole world is watching, To see where we stand
The whole world is waiting, Come on - take my hand

Shirley Klein wrote this poem especially for the April 2003 march and rally organized by California Disability Community Action Network that drew over 3,000 people in protest over massive proposed cuts to Medi-Cal, regional center  community-based services, SSI/SSP. The rally was organized to bring people to the Capitol to testify and attend the budget hearings scheduled that day to consider the Governor's proposals - the first time ever that had been done.  Shirley Klein subsequently also wrote poems for later rallies, including the largest rally to date of people with disabilities and seniors in December 2003 . Over 4,500  people massed outside the North Steps of the Capitol on a cold Monday morning, and flooded into the Capitol to testify at a budget hearing protesting proposed suspension of the Lanterman Developmental Disabilities Services Act, eliminate a major part of the In-Home Supportive Services program, roll back wages of IHSS workers, freeze or withhold cost of living increases for SSI/SSP recipients and more.  Shirley Klein wrote a poem for that and was read at that rally. She will be remembered.  

RECENT CDCAN NEWS CLIPS: (please send us links or copies of news articles, etc on disability-mental health-senior related issues to martyomoto@rcip.com)

April 8, 2007 -  Sacramento Bee Article on Agnews Developmental Center Closure (in San Jose) with two photos including Stacy Cole has been living in Auburn (30 miles north of Sacramento)  where she rides and works with horses, after spending much of her life in institutions and group homes since the age of 3. (Click here to see story and two photos)

April 8, 2007 - Sacramento Bee Daniel Weintraub column on Assisted Suicide (AB 374 "Compassionate Choices Act"): A DIfferent Way To Think About Death and Dying  (Click here for column)

FEDERAL BUDGET NEWS

2007 FEDERAL BUDGET: Final piece of the 2007-2008 Federal Budget Passed by US Congress in February 2007 and signed by the President (Federal budget year Oct 01, 2007 to Sep 30, 2008) including funding increases for HUD, changes to Section 8 formulas. Click for here Summary of Major Final Actions of 2007-2008 Federal Budget


2008 FEDERAL BUDGET: President Bush's proposed federal budget for 2008 (Oct 01, 2007 to Sep 30, 2008 including major proposed cuts (likely to be rejected by the Democratic controlled Congress) to Medicare and Medicaid and other programs. Click for here Summary of President's Proposed Federal Budget for 2008-2009

click here for ab 1184 copy

SPECIAL CDCAN REMEMBERANCE TOWNHALL FOR WARREN MATTINGLY  - Watch for Special CDCAN Rememberance Townhall for Warren Mattingly (pictue red right), our friend, one of the strong founding advocates with CDCAN, and a strong member of People First of San Luis Obispo who passed away May 24, 2006. His last time in Sacramento testifying for disability rights during budget hearings was April 24, 2006 was Monday evening,  before the Assembly Budget Subcommittee.  Assemblymember Sam Blakeslee of San Luis Obispo has authored a bill (AB 18) that is named after Warren, dealing with signature stamps when voting - a big issue for him and many others with disabilities.  That bill passed out of the Senate Judiciary Committee without opposition on July 10, 2007 and now heads to the Senate Appropriations Committee - and then to the Senate Floor.  We miss and will miss him forever - Marty Omoto

PHOTOS FROM PAST DEMONSTRATIONS FOR DISABILITY AND SENIOR RIGHTS